Electric Vehicles

Electric vehicles were a rounding error in India's auto market in 2014. Government support changed that: FAME I (2015) and FAME II (2019, ₹10,000 crore) subsidised EV purchases and charging, and PM E-DRIVE followed in 2024. Annual EV sales climbed from a few thousand to nearly 20 lakh a year by 2024-25, with roughly 50 lakh EVs now on the road.

Growth is led by two- and three-wheelers, which suit Indian cities and short trips, with electric buses expanding public transport in many cities. Homegrown makers like Ola Electric, TVS, Ather and Tata Motors scaled up, charging networks widened, and states added their own EV incentives. EV penetration is nearing double digits in new sales.

India's EV push is led not by cars but by two- and three-wheelers — the scooters and autos most Indians actually use. Government schemes (FAME, and now PM E-DRIVE) offer purchase subsidies that shrink the upfront price gap with petrol, fund charging stations, and back electric buses. A separate incentive for making batteries and cells at home aims to build the supply chain, since imported batteries are the costliest part of an EV.

EV sales have crossed roughly 20 lakh a year, with electric now around 7-8% of new vehicles — led overwhelmingly by two- and three-wheelers, while electric cars remain a small niche. The target is 30% EV penetration by 2030. The transition is still early — the next steps are denser charging networks, cheaper home-made batteries, and cleaner grid power, so that going electric genuinely cuts emissions and oil imports.

The transition is still early — the next steps are spreading charging beyond big cities, making more battery cells at home, and growing confidence in range and resale so EVs move into cars and long-haul too.

~0.2 → ~20 lakh annual EV sales (2014→2025). ~50 lakh EVs on the road. 2W & 3W lead. FAME I/II, PM E-DRIVE. Sources: MoRTH, Vahan, SMEV.